Despite promises to the contrary, it should come as no surprise that the city is unable to meet its obligations. And it won’t be the last. City and state governments all over America are in the same boat.

This is a serious occurrence, and one that will not only destroy the financial bottom line of lenders and wipe out retirement promises for tens of thousands of current and former employees, but may well foreshadow events to come throughout the rest of the United States in the near future:

The city of Detroit defaulted on $2.5 billion of its outstanding debt. The creditors are getting what they deserve.

He who lends to government depends on the exploitation of the people to get repaid.

The city’s retired city workers were also warned that significant cuts in pensions and health insurance would take place.

This is the problem all governments face. They promised the moon. Then when those workers retired, they had to be replaced. The cost of government is rising exponentially and this causes higher taxes and it becomes a dog chasing its own tail.

There is: NO: way out but collapse.

The economic model upon which government has been designed post-WWII is simply braindead. Dumb and Dumber could have done a better job.

The : size of government escalates and this creates a deflationary vortex through which the economy is sucked dry.

There is no surviving this crisis.

Politicians are desperate to cling to power so they buy tanks and guns to defend against the inevitable.

Detroit and Stockton are mere microcosms compared to the almost: unimaginable debt obligations: held by the United States government. We’re talking about tens of trillions of dollars that will never, ever be repaid. There’s so much money that has been borrowed that future generations yet to be born are already indebted.

Detroit, Chicago and other cash-strapped cities are: turning into domestic tribal war zones: akin to the middle east, with cops outnumbered 500-to-1. Now, with the revelation that they have no money left, people who believed in the benevolence of government and depended on them to pay for their retirements are going to be left high and dry.

We will see the same across the rest of this nation, as the federal government runs into similar funding problems for the: one hundred million Americans dependent: on monthly disbursement checks. These checks are either going to be cut, or more likely, our money will be inflated away driving prices for essential goods like food and energy to the moon.

It will end in disaster, and as Martin Armstrong notes, will lead to violent confrontations when people who thought they’d be taken care of from cradle to grave realize that: no help is coming.